Petrol prices jump as depots release new loading rates after Dangote shift to dollar sales
By Aboki Forex —
Petrol loading prices at depots across Nigeria have climbed by as much as N118 per litre this week, following Dangote Refinery's decision to price refined products in US dollars. Private depots in Lagos, Warri, Port Harcourt and Calabar have updated their rates, raising concerns that retail pump prices will rise further in the coming days.
Depot prices rise sharply across four locations
According to data shared by Petroleumprice.ng, depot operators in major hubs have revised their loading prices upward. In Lagos, Pinnacle depot moved from N1,085 to N1,190 per litre, a jump of N105. African Terminal rose from N1,090 to N1,189, up N99. Sahara and Integrated both climbed from N1,090 to N1,189, also up N99. Lister depot increased from N1,090 to N1,200, a rise of N110.
In Warri, Rain Oil depot rose from N1,130 to N1,240, up N110. Matrix moved from N1,120 to N1,220, up N100. Parker went from N1,125 to N1,220, up N95. Optima recorded the highest jump in the region, from N1,117 to N1,235, up N118. A.Y.M Shafa rose from N1,125 to N1,230, up N105.
Port Harcourt depots also saw increases. Bulk Strategic moved from N1,136 to N1,225, up N89. Masters rose from N1,137 to N1,230, up N93. Matrix went from N1,137 to N1,225, up N88. Liquid Bulk increased from N1,140 to N1,225, up N85.
In Calabar, Mainland depot rose from N1,155 to N1,220, up N65. Jenny depot moved from N1,155 to N1,225, up N70.
Why prices are rising and what comes next
The price adjustments follow Dangote Refinery's shift to dollar-denominated sales of Premium Motor Spirit (PMS), Automotive Gas Oil (AGO) and Aviation Turbine Kerosene (ATK). The move has pushed up replacement costs for marketers, forcing private depots to update their loading prices.
Industry stakeholders have warned that retail pump prices at filling stations could increase in the coming days if marketers pass on the higher acquisition costs to consumers. Earlier, Dangote Refinery raised its ex-gantry petrol price by N44 per litre, from N1,076 to N1,120, after adopting dollar-denominated pricing. Some retail outlets have already begun adjusting pump prices, though the changes remain gradual.
Government in talks over return to naira transactions
Negotiations are ongoing between the Nigerian National Petroleum Company Limited (NNPCL), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Dangote Refinery over a possible return to naira-denominated transactions. The talks follow uncertainty around the continuation of the federal government's naira-for-crude arrangement.
Market analysts said depot prices are likely to stay at current levels or rise further as long as marketers continue to source products based on dollar replacement costs. They noted that a successful outcome from the government negotiations could relieve pressure on marketers and help bring prices down in the downstream sector.
For consumers, the development means higher fuel costs are likely in the near term unless the government secures a return to naira-based pricing. The naira's exchange rate against the dollar remains a key factor in determining how far prices will go.